Hey, Ezra here and in this video we’re going to look at where we are in the world of Ecommerce, and to understand where we are, we have to understand where we came from. To that effect, I’d like to tell you a little story now. I have a history of retail in my family going back generations. My great grandfather was a trader in Kolyma Russia. What he would do is he would take a horse covered wagon, and he’d take it seven days journey to Vienna where he would purchase bolts of cotton and wool. He would then take that cotton and wool back to his home town, and trade it for leather. And then he would take that leather back to Vienna, and trade that for more cotton and wool. He’d kind of do this kind of back and forth trading thing, and he did very well with that business until the time of the World War, and then my great … My grandfather, that was my great grandfather Abraham. This is my grandfather Isaac.
He came to America after the war, and he was selling women’s clothing on the lower east side, at a time when all the Jewish people were selling shmattes. They were in the clothing business in New York. He would buy bulk material from one guy, and then he would have it sewed by another guy, and he had an actual shop that he sold out of on Orchard Street in New York City. And then my dad and I, between 20 and 30 years ago, we sold things at the flea market. We would get the kind of stuff like if two teams player in the Superbowl, they make shirts for both teams, you know? In case one of them is going to win, they gotta have the shirts ready. We’d get the shirts for the losing team, and we’d sell this at the flea market. That’s really where I learned how to sell. That’s really where I learned retail.
Now, if you look at the sort of ability that my ancestors as retailers had, let’s take a look. My greater grandfather could actually only sell to people on the side of the street. I mean, that’s kind of … He had people in his local town, and kind of people that he ran across while he was on his journey. And then you have my grandfather, this is Isaac now, and he actually had the traffic of Orchard Street. He had the visibility available to him was the people who came to Orchard Street. And then my dad, Jack and I, had everyone who was at the flea market, right? People would come to the flea market, and that’s who we could sell to.
Well today, I do the very same thing that my family has done for generations, except I build my shops online. I’m doing the same thing we did at the flea market, except for I’m building my shops online, and I’m not geographically limited. I can sell to anyone in America. In fact, I can sell to anyone in any first world nation. Check this out, when I got started online in 2006, 2007, this graph is showing 2008. I got started around 2006, and four percent of total retail transactions were done online. Meaning of all the transactions that happened, only four percent of them were happening online. From the bag of chips you bought down at the grocery store, to the thing you ordered on Amazon.
Now, up to 2014 that doubled. It was growing 15% year over year, and the number of transactions that happen online has doubled to eight percent. It’s still holding strong at around nine percent now, meaning of all the transactions that are happening still, only eight and a half percent are happening online. Now, it’s projected that by 2019 it’s going to double again. The market is just getting bigger. It’s a great time to be selling things on the internet, and the reason is, that the millennial generation, which is my generation, are coming into their prime spending years. They don’t have any kind of hiccups around shopping online, where as the baby boomers didn’t really want to put credit cards in online cause they purchased things mostly over the phone when they were buying from stores that weren’t local.
Now that the millennial generation is coming into their spot prime spending years, they’ve grown up shopping online. That’s one of the reasons that online spending is continuing to increase. The next is that generation X, generation Y, and the baby boomers have sort of crossed the chasm. They’re totally willing to purchase online now, there’s no more hesitation. And, we live in a bit of a social economy. People like to see, and … See things that their friends are doing, and it’s a lot easier to share products, and share experiences through the internet. We’re seeing a lot of product recommendations happening, which is driving online spending.
And then there’s mobile consumption of the digital world. Meaning, people are literally on the internet way more than they were, now that they can carry the internet with the. And there’s incredible comparison shopping online, there’s demand for niche products, and we kind of live in this on demand society where people want stuff now. And you can get things immediately when you purchase them online. Online spending is like really good, and it’s happening a lot.
Now, if you look at it by country, China is still the number one market. I mean, they are crushing it. Then there’s the United States, the United Kingdom, Japan, Germany, France, and a few others. As an Ecommerce business owner you can now sell to anyone in any developed country. If you’re a retailer in the United States, you can retail in the United Kingdom, you can run ads, and there’s really no limit to how well you can do with an online business. If you look at China for example, only two percent of their population shops online. They did 17.8 billion dollars in a 24 hour period just a few weeks ago actually on their sort of biggest shopping holiday of the year.
Which is a 32% growth over 2015, and only two percent of their population shops online. There’s a lot happening here, and it’s a really good time to get into online marketing. You haven’t missed the boat. Something interesting that’s happened is that the way that people consume the digital medium has changed. People are no longer consuming the internet in front of a desktop computer, they’re now carrying it around with them, they’re touching it. So what does that mean for you? Well, it means that 67% of consumers start shopping on one device, and continue shopping on another. They start on their mobile phone and continue on a desktop. Or they start on a tablet, and continue on a mobile phone.
Now, on Facebook, 33% of people who showed interest on a mobile advertisement converted on a desktop. Which means they first saw a brand on a mobile phone, and then they ended up buying from that brand on a desktop computer. In the United States, 60% of adults have two devices. Meaning they have a mobile phone, and an iPad. Or they have a desktop and an iPad. And a quarter of those people have three devices. Meaning they probably have a mobile phone, an iPad, and a laptop or desktop.
Now, people are moving to bigger devices to make purchases. They’re starting their purchase decision on a mobile device, and this is going to make sense, I’m going to tell you where we’re going with this. I want you to understand some of this stuff first. They’re starting on mobile phones and making purchases on bigger devices. 50% of people are multi screening while they watch television. Meaning they’re watching TV, and on their phone at the same time. The thing about the mobile world that we live in is that it comes with fragmentation. Meaning people are consuming content from a number of different channels. The average person has 194 plus channels they consume from, meaning they’re getting their information in Gmail, they’re on YouTube, they’re on Facebook, they’re on Instagram, they’re on Pinterest, they’re on Yahoo. There’s 194 different channels that they’re consuming content on.
Facebook and Instagram, and this is where I’m really going with all of this. Facebook and Instagram account for more time spent on mobile phones than the next 10 channels combined. As you will see throughout this training course, that we’re going to build with these things in mind. We’re going to take the frame of trying to mirror peoples user behavior. Basically trying to communicate with people where they’re at. If we know people are hanging out on Facebook, we want to communicate with them there. If we know how they consume content, we want to setup our content in the way that’s most consumable, as you’ll see in this course.
That’s kind of where we came from. We came from a society of people that you kind of needed to be in a local area to sell something, and the internet has really changed that. It’s allowed us to reach people all over the world in an instant. It’s pretty incredible, it’s a really special time. We’re the first generation of people whose had access to this, and there’s not a lot of us who are paying close enough attention to actually leverage it to benefit our communities, and benefit our families. I’m really excited that you’re taking this training program with me, and I’ll see you in the next video where we will continue to dig into how to effectively make sales through your Shopify store online. See you there.